This document has been translated from the Japanese original solely for reference purposes, and the Japanese original shall prevail if any discrepancy is identified.

SUMMARY OF FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2020

August 7, 2020

Name of Listed Company:

MS&AD Insurance Group Holdings, Inc.

Stock Exchange Listing:

Tokyo Stock Exchange and Nagoya Stock Exchange

Securities Code Number:

8725

URL:

https://www.ms-ad-hd.com

Representative:

Noriyuki Hara, President & CEO

Contact:

Masaru Kenma, Manager, Consolidated Accounting Section, Accounting Department

Telephone: 03-5117-0305

Scheduled date to file the Quarterly Securities Report:

August 7, 2020

Scheduled date to commence dividend payments:

-

Explanatory material for business results:

Available

IR Conference (for institutional investors and analysts):

To be held

(Note) Amounts of less than one million yen are truncated.

1. Consolidated Financial Highlights for the Three Months Ended June 30, 2020 (April 1, 2020 to June 30, 2020)

(1) Consolidated business performance

(Yen in millions)

Ordinary income

Ordinary profit

Net income attributable to owners

of the parent

Three months ended

1,551,774

3.6

%

110,116

(6.6) %

96,699

0.7

%

June 30, 2020

Three months ended

1,497,723

2.5

%

117,916

(6.0) %

95,990

14.5

%

June 30, 2019

Percent figures represent changes from the corresponding period of the preceding year.

(Note) Comprehensive income

For the three months ended June 30, 2020:

¥

230,884

million

170.4

%

For the three months ended June 30, 2019:

¥

85,380

million

44.5

%

(Yen)

Net income attributable to owners

Net income attributable to owners

of the parent per share

of the parent per share

- Basic

- Diluted

Three months ended

170.28

170.18

June 30, 2020

Three months ended

164.64

164.58

June 30, 2019

(2) Consolidated financial conditions

(Yen in millions)

Total assets

Net assets

Ratio of net assets less non-

controlling interests to total assets

June 30, 2020

23,606,193

2,666,168

11.1

%

March 31, 2020

23,196,455

2,494,038

10.6

%

(Reference) Net assets less

non-controlling interests

As of June 30, 2020:

¥

2,628,579

million

As of March 31, 2020:

¥

2,451,670

million

2. Dividends

(Yen)

Dividends per share

1st quarter

2nd quarter

3rd quarter

4th quarter

Annual total

Year ended March 31, 2020

-

75.00

-

75.00

150.00

Year ending March 31, 2021

-

Year ending March 31, 2021

75.00

-

75.00

150.00

(Forecast)

(Note) Revision of the latest announced dividends per share forecast: None

3. Consolidated Earnings Forecasts for the Year Ending March 31, 2021 (April 1, 2020 to March 31, 2021)

(Yen in millions)

Ordinary profit

Net income attributable to owners

Net income attributable to owners

of the parent

of the parent per share (Yen)

Year ending March 31, 2021

170,000

7.8 %

130,000

(9.1) %

229.94

Percent figures represent changes from the preceding year.

(Note) Revision of the latest announced earnings forecasts: None

* Notes

  1. Changes in significant subsidiaries for the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
  2. Adoption of special accounting methods allowed to be applied to quarterly consolidated financial statements: Yes

(Note) For details, please refer to "Adoption of Special Accounting Methods Allowed to be Applied to Quarterly Consolidated Financial Statements" on page 5 of the Appendix.

  1. Changes in accounting policies and accounting estimates and restatements
  1. Changes in accounting policies due to revisions of accounting standards: None
  2. Changes in accounting policies other than above: None
  3. Changes in accounting estimates: None
  4. Restatements: None
  1. Number of shares of issued stock (common stock)
  1. Number of shares of issued stock (including treasury stock)

As of June 30, 2020:

593,291,754 shares

As of March 31, 2020:

593,291,754 shares

2.

Number of shares of treasury stock

As of June 30, 2020:

28,971,897 shares

As of March 31, 2020:

24,244,439 shares

3.

Average number of shares of outstanding stock

For the three months ended June 30, 2020:

567,878,619 shares

For the three months ended June 30, 2019:

583,011,283 shares

  • This report is outside the scope of the external auditor's quarterly review.
  • Notes to the earnings forecasts

Any earnings forecasts in this report have been made based on the information available to the Company as of the disclosure date of the report and certain assumptions, and therefore do not guarantee future performance. Actual results may differ substantially from these forecasts depending on various factors. The forecasts of consolidated ordinary income for the current fiscal year and consolidated earnings for the second quarter (cumulative) are not disclosed due to difficulties in calculating reasonable forecast figures stemming from a high susceptibility to natural disasters and market conditions.

[Appendix]

Contents

Page

Consolidated Financial Statements and Main Notes

1. Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

2

2. Consolidated Statements of Income and Comprehensive Income ・・・・・・・・・・・・・・・・・・・・・・・

3

3. Notes to Consolidated Financial Statements ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

5

(Notes to Going Concern Assumptions) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

5

(Notes to Significant Changes in Shareholders' Equity) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

5

(Adoption of Special Accounting Methods Allowed to be Applied to Quarterly Consolidated

Financial Statements) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

5

Explanatory Material for Business Results

1.

Summary of Consolidated Business Results ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

6

2.

Non-Consolidated Business Results of Mitsui Sumitomo Insurance Co., Ltd. ・・・・・・・・・・・・

10

3.

Non-Consolidated Business Results of Aioi Nissay Dowa Insurance Co., Ltd. ・・・・・・・・・・・・

14

4.

Supplementary Information

(1) Supplementary Information on Consolidated Business Results ・・・・・・・・・・・・・・・・・・・・・・・

18

(2) Summary of Business Results of Main Consolidated Subsidiaries ・・・・・・・・・・・・・・・・・・・・

21

1

Consolidated Financial Statements and Main Notes

1. Consolidated Balance Sheets

(Yen in millions)

March 31, 2020

June 30, 2020

Assets

Cash, deposits and savings

1,846,225

1,601,359

Receivables under resale agreements

407,722

351,582

Monetary claims bought

160,091

219,161

Money trusts

1,666,494

1,869,794

Investments in securities

15,494,580

15,886,809

Loans

892,335

922,270

Tangible fixed assets

488,331

481,674

Intangible fixed assets

442,695

423,478

Other assets

1,535,400

1,644,043

Assets for retirement benefits

24,113

23,769

Deferred tax assets

219,385

163,141

Customers' liabilities under acceptances and guarantees

31,500

31,500

Bad debt reserve

(12,421)

(12,391)

Total assets

23,196,455

23,606,193

Liabilities

Policy liabilities:

17,809,540

18,138,221

Outstanding claims

2,149,921

2,093,043

Underwriting reserves

15,659,619

16,045,178

Bonds issued

809,093

809,093

Other liabilities

1,672,264

1,609,208

Liabilities for pension and retirement benefits

179,686

178,628

Reserve for retirement benefits for officers

325

289

Accrued bonuses for employees

28,392

9,080

Reserve for losses on sales of shares of subsidiaries and associates

16,957

8,844

Reserves under the special laws:

137,400

140,027

Reserve for price fluctuation

137,400

140,027

Deferred tax liabilities

17,254

15,131

Acceptances and guarantees

31,500

31,500

Total liabilities

20,702,416

20,940,024

Net assets

Shareholders' equity:

Common stock

100,000

100,000

Capital surplus

553,163

553,155

Retained earnings

1,019,468

1,073,489

Treasury stock

(84,432)

(99,297)

Total shareholders' equity

1,588,199

1,627,347

Accumulated other comprehensive income:

Net unrealized gains/(losses) on investments in securities

982,042

1,178,785

Net deferred gains/(losses) on hedges

30,916

30,019

Foreign currency translation adjustments

(140,106)

(198,345)

Accumulated actuarial gains/(losses) on retirement benefits

(9,381)

(9,226)

Total accumulated other comprehensive income

863,470

1,001,232

Stock acquisition rights

1,206

1,078

Non-controlling interests

41,161

36,511

Total net assets

2,494,038

2,666,168

Total liabilities and net assets

23,196,455

23,606,193

2

2. Consolidated Statements of Income and Comprehensive Income (Consolidated Statements of Income)

(Yen in millions)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Ordinary income:

1,497,723

1,551,774

Underwriting income:

1,336,752

1,047,454

Net premiums written

976,807

943,499

Deposit premiums from policyholders

22,181

24,553

Investment income on deposit premiums from policyholders

10,310

9,655

Life insurance premiums

298,420

49,896

Reversal of outstanding claims

27,205

17,848

Investment income:

153,861

499,890

Interest and dividends income

91,282

89,844

Investment gains on money trusts

19,499

100,729

Investment gains on trading securities

22,813

-

Gains on sales of securities

23,189

26,349

Investment gains on separate accounts

6,929

102,703

Transfer of investment income on deposit premiums from policyholders

(10,310)

(9,655)

Other ordinary income

7,108

4,429

Ordinary expenses:

1,379,806

1,441,658

Underwriting expenses:

1,070,786

1,222,109

Net claims paid

477,776

456,151

Loss adjustment expenses

44,063

45,382

Commissions and collection expenses

183,567

179,347

Maturity refunds to policyholders

48,348

49,707

Life insurance claims

92,348

71,159

Provision for underwriting reserves

218,529

414,641

Investment expenses:

134,165

36,172

Investment losses on money trusts

23,616

6,016

Investment losses on trading securities

-

10,139

Losses on sales of securities

1,405

3,029

Impairment losses on securities

3,054

5,717

Operating expenses and general and administrative expenses

169,835

167,797

Other ordinary expenses:

5,019

15,577

Interest expense

3,272

3,606

Ordinary profit

117,916

110,116

Extraordinary income:

11,976

8,188

Gains on sales of fixed assets

97

75

Reversal of reserves under the special laws:

9,074

-

Reversal of reserve for price fluctuation

9,074

-

Gains on change in equity

2,804

-

Reversal of reserve for losses on sales of shares of subsidiaries and associates

-

8,113

Extraordinary losses:

723

6,494

Losses on sales of fixed assets

576

1,039

Impairment losses on fixed assets

146

1,583

Provision for reserves under the special laws:

-

2,626

Provision for reserve for price fluctuation

-

2,626

Losses on change in equity

-

1,245

Income before income taxes

129,169

111,810

Income taxes

32,287

14,538

Net income

96,881

97,271

Net income attributable to non-controlling interests

891

571

Net income attributable to owners of the parent

95,990

96,699

3

(Consolidated Statements of Comprehensive Income)

(Yen in millions)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Net income

96,881

97,271

Other comprehensive income:

Net unrealized gains/(losses) on investments in securities

(49,668)

193,673

Net deferred gains/(losses) on hedges

2,284

(1,202)

Foreign currency translation adjustments

16,706

(55,198)

Accumulated actuarial gains/(losses) on retirement benefits

(202)

155

Share of other comprehensive income of equity method investments

19,378

(3,815)

Total other comprehensive income

(11,501)

133,613

Total comprehensive income

85,380

230,884

Allocation:

Comprehensive income attributable to owners of the parent

83,883

234,461

Comprehensive income attributable to non-controlling interests

1,497

(3,576)

4

3. Notes to Consolidated Financial Statements

(Notes to Going Concern Assumptions)

Not applicable.

(Notes to Significant Changes in Shareholders' Equity)

Not applicable.

(Adoption of Special Accounting Methods Allowed to be Applied to Quarterly Consolidated Financial Statements)

(Calculation of income tax expenses)

The domestic consolidated companies calculate their income tax expenses primarily by multiplying income before income taxes by the effective income tax rate, after adding or deducting the permanent difference if this amount is significant.

5

Explanatory Material for Business Results

1. Summary of Consolidated Business Results

(1) Consolidated Business Results

(Yen in 100 millions)

Items

Three months ended

Three months ended

Change

Change ratio

June 30, 2019

June 30, 2020

%

Net premiums written (non-life insurance)

1

9,768

9,434

(333)

(3.4)

Mitsui Sumitomo Insurance

2

3,787

3,754

(32)

(0.9)

Aioi Nissay Dowa Insurance

3

3,179

3,123

(56)

(1.8)

Simple sum

4

6,966

6,877

(89)

(1.3)

Mitsui Direct General Insurance

5

90

92

1

1.7

Overseas insurance subsidiaries

6

2,702

2,464

(237)

(8.8)

Insurance premiums (domestic life insurance)

7

3,759

1,990

(1,768)

(47.1)

Mitsui Sumitomo Aioi Life Insurance

8

1,225

1,204

(20)

(1.7)

Mitsui Sumitomo Primary Life Insurance

9

2,534

785

(1,748)

(69.0)

Ordinary profit

10

1,179

1,101

(78)

(6.6)

Net income attributable to owners of the parent

11

959

966

7

0.7

Mitsui Sumitomo Insurance

12

658

626

(31)

(4.8)

Aioi Nissay Dowa Insurance

13

239

309

70

29.4

Simple sum

14

897

936

38

4.3

Mitsui Direct General Insurance

15

17

12

(4)

(28.4)

Mitsui Sumitomo Aioi Life Insurance

16

20

48

28

141.3

Mitsui Sumitomo Primary Life Insurance

17

52

55

3

6.7

Overseas insurance subsidiaries

18

98

(259)

(358)

(363.9)

Others, consolidation adjustments, etc.

19

(125)

173

299

-

(Note) Items 12 to 18 represent the net income or loss on a non-consolidated basis after taking into account the Company's ownership interests in its subsidiaries.

6

(2) Business Results of Domestic Non-Life Insurance Subsidiaries (Simple Sum of Two Main Consolidated Subsidiaries)

The figures in the tables below are presented as simple sum of Mitsui Sumitomo Insurance Co., Ltd. and Aioi Nissay Dowa Insurance Co., Ltd.

(Yen in 100 millions)

Items

Three months ended

Three months ended

Change

Change ratio

June 30, 2019

June 30, 2020

%

(+)

Net premiums written

1

6,966

6,877

(89)

(1.3)

(-)

Net claims paid

2

3,700

3,614

(85)

(2.3)

(-)

Loss adjustment expenses

3

384

404

20

5.3

(-)

Commissions and collection expenses

4

1,324

1,383

59

4.5

(-)

Operating expenses and general and

5

970

992

22

2.3

administrative expenses for underwriting

Underwriting profit before

6

587

481

(106)

(18.1)

movements in reserves

(-)

Movement in outstanding claims

7

(279)

(353)

(74)

-

(-)

Movement in ordinary underwriting reserves

8

89

36

(53)

(59.4)

(+)

Other

9

(11)

40

51

-

Underwriting profit before

10

766

839

72

9.5

movement in catastrophe reserve

(-)

Movement in catastrophe reserve

11

138

33

(105)

(76.1)

Underwriting profit

12

628

806

177

28.3

(+)

Interest and dividends income

13

610

541

(68)

(11.3)

(-)

Transfer of investment income on deposit

14

118

110

(8)

(6.9)

premiums from policyholders

Net interest and dividends income

15

492

431

(60)

(12.3)

(item 13 - item 14)

(+)

Gains/(losses) on sales of securities

16

198

102

(96)

(48.6)

(-)

Impairment losses on securities

17

42

13

(28)

(67.5)

(+)

Other

18

(58)

(17)

40

-

Investment profit

19

589

502

(87)

(14.9)

(+)

Other ordinary profit/(loss)

20

(20)

(32)

(11)

-

Ordinary profit

21

1,197

1,276

78

6.6

(+)

Extraordinary income/(losses):

22

(20)

(46)

(25)

-

Gains/(losses) on reserve for price fluctuation

23

(14)

(14)

0

-

Income before income taxes

24

1,176

1,230

53

4.6

(-)

Income taxes

25

279

293

14

5.2

Net income

26

897

936

38

4.3

Net loss ratio

Note 1

27

58.6

%

58.4

%

(0.2) %

Ratios

Net expense ratio

Note 2

28

32.9

%

34.6

%

1.7

%

Combined ratio

Note 3

29

91.5

%

93.0

%

1.5

%

Incurred losses (including loss adjustment expenses) Note 4, 5

30

3,178

3,070

(108)

(3.4)

EI loss ratio

Note 4, 6

31

52.0

%

50.2

%

(1.8) %

(Notes) 1. Net loss ratio = (net claims paid + loss adjustment expenses) / net premiums written x 100

  1. Net expense ratio = (commissions and collection expenses + operating expenses and general and administrative expenses for underwriting) / net premiums written x 100
  2. Combined ratio = net loss ratio + net expense ratio
  3. The calculation is exclusive of residential earthquake insurance and CALI*.
    * CALI stands for compulsory automobile liability insurance, and the same hereinafter.
  4. Incurred losses (including loss adjustment expenses) = net claims paid + loss adjustment expenses + movement in outstanding claims
  5. EI loss ratio = incurred losses (including loss adjustment expenses) / earned premiums x 100
    Earned premiums are calculated based on unearned premiums (excluding underwriting reserves for natural disasters), premium reserve, etc.

7

  1. Business Results of Domestic Life Insurance Subsidiaries 1. Mitsui Sumitomo Aioi Life Insurance Co., Ltd.

(Yen in 100 millions)

Items

Three months ended

Three months ended

Change

Change ratio

June 30, 2019

June 30, 2020

Amount of new policies(Note)

1

5,021

3,335

(1,686)

(33.6)

%

Annualized premiums of

2

66

47

(19)

(29.3)

%

new policies

Amount of policies in force(Note)

3

(As of the beginning

244,580

243,349

(Change from

(1,230)

(0.5)

%

the beginning of

of the FY2020)

the FY2020)

Annualized premiums for

4

(As of the beginning

4,481

4,459

(Change from

(21)

(0.5)

%

the beginning of

policies in force

of the FY2020)

the FY2020)

Insurance premiums

5

1,225

1,204

(20)

(1.7)

%

Ordinary profit

6

46

78

31

69.1

%

Extraordinary income/(losses)

7

(2)

(2)

(0)

-

Net income

8

20

48

28

141.3

%

(Note) The figures represent the total sum of individual insurance and individual annuities.

2. Mitsui Sumitomo Primary Life Insurance Co., Ltd.

(Yen in 100 millions)

Items

Three months ended

Three months ended

Change

Change ratio

June 30, 2019

June 30, 2020

Amount of new policies(Note)

1

2,555

792

(1,763)

(69.0)

%

Amount of policies in force(Note)

2

(As of the beginning

65,140

67,801

(Change from

2,660

4.1

%

the beginning of

of the FY2020)

the FY2020)

Insurance premiums

3

2,534

785

(1,748)

(69.0)

%

Ordinary profit/(loss)

4

(36)

86

123

-

Extraordinary income/(losses)

5

108

(9)

(117)

(108.9)

%

Net income

6

52

55

3

6.7

%

(Note) The figures represent the total sum of individual insurance and individual annuities.

8

(4) Business Results of Overseas Insurance Subsidiaries

(Yen in 100 millions)

Items

Three months ended

Three months ended

Change

Change ratio

June 30, 2019

June 30, 2020

%

Net premiums written

1

2,702

2,464

(237)

(8.8)

Asia

2

473

437

(36)

(7.7)

Europe

3

2,120

1,926

(194)

(9.2)

Americas

4

107

101

(6)

(6.0)

Net income/(loss) attributable to owners of the parent

5

98

(259)

(358)

(363.9)

Asia

6

36

39

3

9.6

Europe

7

19

(189)

(208)

(1,064.8)

Americas

8

3

(4)

(7)

(226.4)

International life insurance

9

39

(105)

(145)

(371.2)

9

2. Non-Consolidated Business Results of Mitsui Sumitomo Insurance Co., Ltd.

(1) Business Results

(Yen in 100 millions)

Items

Three months ended

Three months ended

Change

Change ratio

June 30, 2019

June 30, 2020

%

(+)

Net premiums written

1

3,787

3,754

(32)

(0.9)

(-)

Net claims paid

2

2,043

2,015

(27)

(1.3)

(-)

Loss adjustment expenses

3

216

227

10

5.1

(-)

Commissions and collection expenses

4

685

728

42

6.3

(-)

Operating expenses and general and

5

516

545

28

5.5

administrative expenses for underwriting

Underwriting profit before

6

324

237

(87)

(26.9)

movements in reserves

(-)

Movement in outstanding claims

7

(148)

(222)

(74)

-

(-)

Movement in ordinary underwriting reserves

8

(28)

(20)

7

-

(+)

Other

9

6

9

3

52.2

Underwriting profit before

10

507

489

(17)

(3.5)

movement in catastrophe reserve

(-)

Movement in catastrophe reserve

11

42

(1)

(43)

(102.5)

Underwriting profit

12

464

490

25

5.5

(+)

Interest and dividends income

13

406

365

(41)

(10.3)

(-)

Transfer of investment income on deposit

14

77

73

(4)

(6.0)

premiums from policyholders

Net interest and dividends income

15

329

291

(37)

(11.3)

(item 13 - item 14)

(+)

Gains/(losses) on sales of securities

16

138

68

(69)

(50.3)

(-)

Impairment losses on securities

17

12

6

(6)

(49.7)

(+)

Other

18

(37)

6

43

-

Investment profit

19

417

360

(57)

(13.7)

(+)

Other ordinary profit/(loss)

20

(19)

(15)

3

-

Ordinary profit

21

863

834

(28)

(3.3)

(+)

Extraordinary income/(losses)

22

(12)

(11)

1

-

Gains/(losses) on reserve for price fluctuation

23

(10)

(9)

0

-

Income before income taxes

24

850

823

(27)

(3.2)

(-)

Income taxes

25

192

197

4

2.3

Net income

26

658

626

(31)

(4.8)

Net loss ratio

Note 1

27

59.7

%

59.8

%

0.1

%

Ratios

Net expense ratio

Note 2

28

31.8

%

33.9

%

2.1

%

Combined ratio

Note 3

29

91.5

%

93.7

%

2.2

%

Incurred losses (including loss adjustment expenses)

Note 4, 5

30

1,771

1,696

(74)

(4.2)

EI loss ratio

Note 4, 6

31

51.9

%

50.0

%

(1.9) %

(Notes) 1. Net loss ratio = (net claims paid + loss adjustment expenses) / net premiums written x 100

  1. Net expense ratio = (commissions and collection expenses + operating expenses and general and administrative expenses for underwriting) / net premiums written x 100
  2. Combined ratio = net loss ratio + net expense ratio
  3. The calculation is exclusive of residential earthquake insurance and CALI.
  4. Incurred losses (including loss adjustment expenses) = net claims paid + loss adjustment expenses + movement in outstanding claims
  5. EI loss ratio = incurred losses (including loss adjustment expenses) / earned premiums x 100
    Earned premiums are calculated based on unearned premiums (excluding underwriting reserves for natural disasters), premium reserve, etc.

10

Mitsui Sumitomo Insurance Co., Ltd. (Non-consolidated)

(2) Premiums written

(Yen in 100 millions)

Net premiums written

Direct premiums written (excluding deposit premiums from policyholders)

Three months ended

Three months ended

Three months ended

Three months ended

June 30, 2019

June 30, 2020

June 30, 2019

June 30, 2020

Amount

Change ratio

Amount

Change ratio

Amount

Change ratio

Amount

Change ratio

%

%

%

%

Fire and allied

398

(8.5)

381

(4.2)

723

9.8

756

4.6

Marine

157

(4.3)

141

(10.2)

265

(0.0)

250

(5.9)

Personal accident

401

(1.9)

408

1.9

429

(1.4)

420

(2.1)

Voluntary automobile

1,706

1.3

1,715

0.5

1,715

1.3

1,740

1.4

CALI

427

7.5

406

(4.9)

445

6.4

347

(21.9)

Other

696

3.4

701

0.7

825

4.2

865

4.9

Total

3,787

0.6

3,754

(0.9)

4,405

3.3

4,381

(0.6)

(3) Net claims paid

(Yen in 100 millions)

Three months ended June 30, 2019

Three months ended June 30, 2020

Amount

Change ratio

Net loss ratio

Amount

Change ratio

Net loss ratio

Change

%

%

%

%

%

Fire and allied

347

16.6

90.6

324

(6.8)

88.7

(1.9)

Marine

75

18.3

50.2

85

13.1

62.9

12.7

Personal accident

169

(5.6)

46.5

182

7.6

48.6

2.1

Voluntary automobile

829

0.5

56.5

737

(11.0)

51.6

(4.9)

CALI

308

(6.3)

79.7

294

(4.7)

79.7

0.0

Other

313

14.0

47.1

392

25.3

58.3

11.2

Total

2,043

3.7

59.7

2,015

(1.3)

59.8

0.1

(Note) Net loss ratio = (net claims paid + loss adjustment expenses) / net premiums written

x 100

(Reference) Incurred losses caused by natural disasters in Japan

(Yen in 100 millions)

Three months ended June 30, 2019

Three months ended June 30, 2020

Incurred losses

Net claims paid

Outstanding

Incurred losses

Net claims paid

Outstanding

claims

claims

Fire and allied

0

-

0

16

11

4

Voluntary automobile

-

-

-

0

0

0

Other

-

-

-

0

0

0

Total

0

-

0

16

11

5

(Note) The above table describes losses caused by natural disasters in Japan, which exclude

residential

earthquake insurance,

incurred

during the respective period.

(4) Expenses

(Yen in 100 millions)

Items

Three months ended June 30, 2019

Three months ended June 30, 2020

Amount

Change

Change ratio

Amount

Change

Change ratio

%

418

(6)

%

Personnel expenses

1

424

(10)

(2.5)

(1.6)

Non-personnel expenses

2

304

(5)

(1.8)

350

45

14.8

Taxes and contributions

3

32

(0)

(0.6)

32

(0)

(0.2)

Total

4

761

(16)

(2.1)

800

38

5.1

(Note) Total = loss adjustment expenses + operating expenses and general and administrative expenses

(Yen in 100 millions)

Items

Three months ended June 30, 2019

Three months ended June 30, 2020

Amount

Change

Change ratio

Amount

Change

Change ratio

Operating expenses and general

%

%

5

516

(17)

(3.3)

545

28

5.5

and administrative expenses

Commissions and

6

685

21

3.3

728

42

6.3

collection expenses

Total

7

1,202

4

0.4

1,273

71

5.9

Net expense ratio

8

31.8 %

0.0

%

33.9 %

2.1

%

11

Mitsui Sumitomo Insurance Co., Ltd. (Non-consolidated)

(5) Catastrophe reserve

(Yen in 100 millions)

March 31, 2020

June 30, 2020

Balance

Reversal

Provision

Balance

Reserve ratio

Reserve ratio

%

%

Fire and allied

998

48.6

121

40

917

60.2

Marine

813

131.4

0

1

814

143.9

Personal accident

748

51.0

-

13

761

46.6

Voluntary automobile

978

14.6

-

54

1,033

15.1

Other

1,907

68.4

13

23

1,917

68.4

Total

5,446

39.9

135

134

5,445

40.7

(Note) Reserve ratio = catastrophe reserve / net premiums written (excluding premiums of residential earthquake insurance and CALI) x 100 Reserve ratio for June 30, 2020 is calculated on an annualized basis using net premiums written multiplied by four as a denominator.

(6) Investment assets

(Yen in 100 millions)

March 31, 2020

June 30, 2020

Change

Cash, deposits and savings

5,009

4,540

(469)

Investments in securities:

49,255

49,984

729

Domestic bonds

15,342

15,057

(284)

Domestic stocks

14,339

15,382

1,043

Foreign securities

18,948

18,891

(57)

Other securities

624

652

27

Loans

4,006

4,141

135

Land and buildings

1,900

1,890

(10)

Total

60,171

60,556

384

(Reference)

Long-term investment assets

10,394

10,284

(109)

(7) Breakdown of interest and dividends income

(Yen in 100 millions)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Change

Investments in securities:

379

340

(39)

Domestic bonds

41

37

(3)

Domestic stocks

233

211

(22)

Foreign securities

103

90

(13)

Other securities

1

1

(0)

Loans

7

6

(0)

Land and buildings

16

15

(0)

Other

3

1

(1)

Total

406

365

(41)

12

Mitsui Sumitomo Insurance Co., Ltd. (Non-consolidated)

(8) Investments in securities

Unrealized gains and losses on investments in securities

(Yen in 100 millions)

June 30, 2020

Cost

Fair value

Difference

Change from

March 31, 2020

Domestic bonds

13,808

15,057

1,249

(94)

Domestic stocks

5,791

14,994

9,202

1,093

Foreign securities

4,348

4,555

207

172

Other securities

337

349

12

21

Total

24,284

34,957

10,672

1,193

(Yen in 100 millions)

March 31, 2020

Cost

Fair value

Difference

Domestic bonds

13,999

15,342

1,343

Domestic stocks

5,836

13,945

8,108

Foreign securities

4,587

4,622

35

Other securities

345

336

(8)

Total

24,768

34,246

9,478

(Notes) 1. The above tables describe available-for-sale securities with practically determinable fair value.

2. "Other securities" includes loan receivable trust beneficiary certificates included in Monetary claims bought on the balance sheets.

Gains and losses on sales of securities

(Yen in 100 millions)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Gains/(losses)

Gains/(losses)

Gains

Losses

Domestic bonds

17

2

2

0

Domestic stocks

104

58

58

0

Foreign securities

16

7

10

2

Other securities

-

0

0

-

Total

138

68

72

3

Impairment losses on securities

(Yen in 100 millions)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Change

Domestic bonds

-

-

-

Domestic stocks

12

6

(6)

Foreign securities

0

-

(0)

Other securities

-

-

-

Total

12

6

(6)

13

3. Non-Consolidated Business Results of Aioi Nissay Dowa Insurance Co., Ltd.

(1) Business Results

(Yen in 100 millions)

Items

Three months ended

Three months ended

Change

Change ratio

June 30, 2019

June 30, 2020

%

(+)

Net premiums written

1

3,179

3,123

(56)

(1.8)

(-)

Net claims paid

2

1,656

1,599

(57)

(3.5)

(-)

Loss adjustment expenses

3

167

177

9

5.5

(-)

Commissions and collection expenses

4

638

654

16

2.6

(-)

Operating expenses and general and

5

453

447

(5)

(1.3)

administrative expenses for underwriting

Underwriting profit before

6

262

244

(18)

(7.1)

movements in reserves

(-)

Movement in outstanding claims

7

(131)

(131)

0

-

(-)

Movement in ordinary underwriting reserves

8

117

56

(60)

(51.8)

(+)

Other

9

(17)

31

48

-

Underwriting profit before

10

259

349

90

34.9

movement in catastrophe reserve

(-)

Movement in catastrophe reserve

11

95

34

(61)

(64.5)

Underwriting profit

12

163

315

152

93.2

(+)

Interest and dividends income

13

203

176

(26)

(13.2)

(-)

Transfer of investment income on deposit

14

40

36

(3)

(8.7)

premiums from policyholders

Net interest and dividends income

15

163

140

(23)

(14.4)

(item 13 - item 14)

(+)

Gains/(losses) on sales of securities

16

60

33

(27)

(44.8)

(-)

Impairment losses on securities

17

30

7

(22)

(74.8)

(+)

Other

18

(21)

(23)

(2)

-

Investment profit

19

172

142

(30)

(17.6)

(+)

Other ordinary profit/(loss)

20

(1)

(16)

(14)

-

Ordinary profit

21

334

441

107

32.1

(+)

Extraordinary income/(losses):

22

(8)

(35)

(26)

-

Gains/(losses) on reserve for price fluctuation

23

(4)

(4)

(0)

-

Income before income taxes

24

325

406

80

24.8

(-)

Income taxes

25

86

96

10

11.9

Net income

26

239

309

70

29.4

Net loss ratio

Note 1

27

57.4

%

56.9

%

(0.5) %

Ratios

Net expense ratio

Note 2

28

34.3

%

35.3

%

1.0

%

Combined ratio

Note 3

29

91.7

%

92.2

%

0.5

%

Incurred losses (including loss adjustment expenses)

Note 4, 5

30

1,407

1,373

(34)

(2.4)

EI loss ratio

Note 4, 6

31

52.1

%

50.4

%

(1.7) %

(Notes) 1. Net loss ratio = (net claims paid + loss adjustment expenses) / net premiums written x 100

  1. Net expense ratio = (commissions and collection expenses + operating expenses and general and administrative expenses for underwriting) / net premiums written x 100
  2. Combined ratio = net loss ratio + net expense ratio
  3. The calculation is exclusive of residential earthquake insurance and CALI.
  4. Incurred losses (including loss adjustment expenses) = net claims paid + loss adjustment expenses + movement in outstanding claims
  5. EI loss ratio = incurred losses (including loss adjustment expenses) / earned premiums x 100
    Earned premiums are calculated based on unearned premiums (excluding underwriting reserves for natural disasters), premium reserve, etc.

14

Aioi Nissay Dowa Insurance Co., Ltd. (Non-consolidated)

(2) Premiums written

(Yen in 100 millions)

Net premiums written

Direct premiums written (excluding deposit premiums from policyholders)

Three months ended

Three months ended

Three months ended

Three months ended

June 30, 2019

June 30, 2020

June 30, 2019

June 30, 2020

Amount

Change ratio

Amount

Change ratio

Amount

Change ratio

Amount

Change ratio

%

%

%

%

Fire and allied

414

1.8

380

(8.2)

538

11.1

570

5.9

Marine

19

(0.5)

18

(2.1)

-

(100.0)

-

-

Personal accident

157

(9.3)

159

0.9

168

(7.9)

173

2.9

Voluntary automobile

1,825

2.8

1,841

0.9

1,718

1.6

1,757

2.2

CALI

384

5.7

362

(5.7)

470

7.7

368

(21.7)

Other

379

5.8

360

(4.8)

427

4.4

433

1.4

Total

3,179

2.7

3,123

(1.8)

3,323

3.7

3,302

(0.6)

(3) Net claims paid

(Yen in 100 millions)

Three months ended June 30, 2019

Three months ended June 30, 2020

Amount

Change ratio

Net loss ratio

Amount

Change ratio

Net loss ratio

Change

%

%

%

%

%

Fire and allied

286

5.9

72.0

317

11.0

87.4

15.4

Marine

11

37.4

58.6

10

(10.6)

53.5

(5.1)

Personal accident

62

(3.0)

45.6

64

4.1

46.6

1.0

Voluntary automobile

884

2.7

54.7

789

(10.7)

49.4

(5.3)

CALI

264

(7.0)

74.5

248

(5.9)

75.0

0.5

Other

148

13.3

41.9

167

13.3

49.3

7.4

Total

1,656

2.3

57.4

1,599

(3.5)

56.9

(0.5)

(Note) Net loss ratio = (net claims paid + loss adjustment expenses) / net premiums written

x 100

(Reference) Incurred losses caused by natural disasters in Japan

(Yen in 100 millions)

Three months ended June 30, 2019

Three months ended June 30, 2020

Incurred losses

Net claims paid

Outstanding

Incurred losses

Net claims paid

Outstanding

claims

claims

Fire and allied

3

0

2

8

6

2

Voluntary automobile

0

0

0

0

0

0

Other

0

0

0

0

0

0

Total

4

0

3

9

6

2

(Note) The above table describes losses caused by natural disasters in Japan, which exclude

residential

earthquake insurance,

incurred

during the respective period.

(4) Expenses

(Yen in 100 millions)

Items

Three months ended June 30, 2019

Three months ended June 30, 2020

Amount

Change

Change ratio

Amount

Change

Change ratio

%

(4)

%

Personnel expenses

1

322

10

3.3

318

(1.4)

Non-personnel expenses

2

290

27

10.5

299

9

3.1

Taxes and contributions

3

28

0

1.7

29

0

2.9

Total

4

642

38

6.4

647

5

0.8

(Note) Total = loss adjustment expenses + operating expenses and general and administrative expenses

(Yen in 100 millions)

Items

Three months ended June 30, 2019

Three months ended June 30, 2020

Amount

Change

Change ratio

Amount

Change

Change ratio

Operating expenses and general

%

%

5

453

30

7.2

447

(5)

(1.3)

and administrative expenses

Commissions and

6

638

21

3.5

654

16

2.6

collection expenses

Total

7

1,091

52

5.0

1,102

10

1.0

Net expense ratio

8

34.3 %

0.7

%

35.3 %

1.0 %

15

Aioi Nissay Dowa Insurance Co., Ltd. (Non-consolidated)

(5) Catastrophe reserve

(Yen in 100 millions)

March 31,2020

June 30, 2020

Balance

Reversal

Provision

Balance

Reserve ratio

Reserve ratio

%

%

Fire and allied

858

43.1

105

57

810

53.4

Marine

98

136.2

0

0

98

131.4

Personal accident

662

116.4

-

5

667

104.8

Voluntary automobile

571

8.0

-

58

630

8.6

Other

768

55.9

2

20

786

54.5

Total

2,959

26.6

108

143

2,993

27.1

(Note) Reserve ratio = catastrophe reserve / net premiums written (excluding premiums of residential earthquake insurance and CALI) x 100 Reserve ratio for June 30, 2020 is calculated on an annualized basis using net premiums written multiplied by four as a denominator.

(6) Investment assets

(Yen in 100 millions)

March 31,2020

June 30, 2020

Change

Cash, deposits and savings

1,765

1,690

(74)

Investments in securities:

23,176

23,843

667

Domestic bonds

8,290

7,766

(524)

Domestic stocks

6,969

7,726

756

Foreign securities

7,158

7,501

342

Other securities

757

849

91

Loans

2,181

2,235

53

Land and buildings

1,598

1,569

(28)

Total

28,721

29,339

617

(Reference)

Long-term investment assets

3,578

3,510

(68)

(7) Breakdown of interest and dividends income

(Yen in 100 millions)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Change

Investments in securities:

183

156

(26)

Domestic bonds

21

20

(1)

Domestic stocks

111

98

(12)

Foreign securities

37

34

(3)

Other securities

13

3

(9)

Loans

5

5

(0)

Land and buildings

12

11

(0)

Other

3

2

(0)

Total

203

176

(26)

16

Aioi Nissay Dowa Insurance Co., Ltd. (Non-consolidated)

(8) Investments in securities

Unrealized gains and losses on investments in securities

(Yen in 100 millions)

June 30, 2020

Cost

Fair value

Difference

Change from

March 31, 2020

Domestic bonds

7,253

7,766

512

(27)

Domestic stocks

3,804

7,465

3,660

750

Foreign securities

6,083

6,614

530

206

Other securities

719

735

15

36

Total

17,861

22,581

4,719

966

(Yen in 100 millions)

March 31, 2020

Cost

Fair value

Difference

Domestic bonds

7,750

8,290

540

Domestic stocks

3,798

6,708

2,910

Foreign securities

5,957

6,282

324

Other securities

672

651

(20)

Total

18,179

21,932

3,753

(Note) The above tables describe available-for-sale securities with practically determinable fair value.

Gains and losses on sales of securities

(Yen in 100 millions)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Gains/(losses)

Gains/(losses)

Gains

Losses

Domestic bonds

8

10

10

0

Domestic stocks

38

11

11

-

Foreign securities

13

11

12

0

Other securities

-

-

-

-

Total

60

33

34

0

Impairment losses on securities

(Yen in 100 millions)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Change

Domestic bonds

-

-

-

Domestic stocks

22

2

(19)

Foreign securities

7

4

(2)

Other securities

-

-

-

Total

30

7

(22)

17

4. Supplementary Information

  1. Supplementary Information on Consolidated Business Results
    (a) Consolidated Business Results

(Yen in 100 millions)

Three months ended

Three months ended

Change

Change ratio

June 30, 2019

June 30, 2020

Ordinary income and expenses:

Underwriting income:

13,367

10,474

(2,892)

(21.6) %

Net premiums written

9,768

9,434

(333)

(3.4)

Deposit premiums from policyholders

221

245

23

10.7

Life insurance premiums

2,984

498

(2,485)

(83.3)

Reversal of outstanding claims

272

178

(93)

(34.4)

Underwriting expenses:

10,707

12,221

1,513

14.1

Net claims paid

4,777

4,561

(216)

(4.5)

Loss adjustment expenses

440

453

13

3.0

Commissions and collection expenses

1,835

1,793

(42)

(2.3)

Maturity refunds to policyholders

483

497

13

2.8

Life insurance claims

923

711

(211)

(22.9)

Provision for underwriting reserves

2,185

4,146

1,961

89.7

Investment income:

1,538

4,998

3,460

224.9

Interest and dividends income

912

898

(14)

(1.6)

Investment gains on money trusts

194

1,007

812

416.6

Gains on sales of securities

231

263

31

13.6

Investment gains on separate accounts

69

1,027

957

1,382.1

Investment expenses:

1,341

361

(979)

(73.0)

Investment losses on money trusts

236

60

(175)

(74.5)

Losses on sales of securities

14

30

16

115.6

Impairment losses on securities

30

57

26

87.2

Operating expenses and general and administrative

1,698

1,677

(20)

(1.2)

expenses

Other ordinary income and expenses:

20

(111)

(132)

(633.6)

Gains/(losses) on equity method investments

24

(103)

(127)

(529.1)

Ordinary profit

1,179

1,101

(78)

(6.6)

Extraordinary income and losses:

Extraordinary income

119

81

(37)

(31.6)

Extraordinary losses

7

64

57

797.7

Extraordinary income/(losses)

112

16

(95)

(84.9)

Income before income taxes

1,291

1,118

(173)

(13.4)

Income taxes

322

145

(177)

(55.0)

Net income

968

972

3

0.4

Net income attributable to non-controlling interests

8

5

(3)

(35.9)

Net income attributable to owners of the parent

959

966

7

0.7

18

(b) Premiums Written and Net Claims Paid by Line of Insurance

Direct Premiums Written by Line of Insurance (including Deposit premiums from policyholders)

(Yen in millions)

Three months ended

Three months ended

Lines of Insurance

June 30, 2019

June 30, 2020

Amount

Share

Change ratio

Amount

Share

Change ratio

(%)

(%)

(%)

(%)

Fire and allied

186,821

17.6

7.2

186,233

18.0

(0.3)

Marine

66,523

6.3

(4.4)

69,931

6.8

5.1

Personal accident

88,203

8.3

(1.3)

88,280

8.5

0.1

Voluntary automobile

420,024

39.6

1.8

423,283

40.9

0.8

CALI

91,612

8.6

7.1

71,643

6.9

(21.8)

Other

207,442

19.6

(0.0)

195,951

18.9

(5.5)

Total:

1,060,628

100.0

2.1

1,035,324

100.0

(2.4)

Deposit premiums from policyholders

22,181

2.1

4.7

24,553

2.4

10.7

Net Premiums Written by Line of Insurance

(Yen in millions)

Three months ended

Three months ended

Lines of Insurance

June 30, 2019

June 30, 2020

Amount

Share

Change ratio

Amount

Share

Change ratio

(%)

(%)

(%)

(%)

Fire and allied

146,409

15.0

(1.9)

125,703

13.3

(14.1)

Marine

49,830

5.1

(7.4)

52,873

5.6

6.1

Personal accident

71,403

7.3

(0.8)

66,997

7.1

(6.2)

Voluntary automobile

438,074

44.9

2.6

435,106

46.1

(0.7)

CALI

81,260

8.3

6.6

76,986

8.2

(5.3)

Other

189,829

19.4

(0.4)

185,832

19.7

(2.1)

Total

976,807

100.0

0.8

943,499

100.0

(3.4)

Net Claims Paid by Line of Insurance

(Yen in millions)

Three months ended

Three months ended

Lines of Insurance

June 30, 2019

June 30, 2020

Amount

Share

Change ratio

Amount

Share

Change ratio

(%)

(%)

(%)

(%)

Fire and allied

92,604

19.4

(2.4)

84,506

18.5

(8.7)

Marine

18,143

3.8

0.4

17,284

3.8

(4.7)

Personal accident

27,695

5.8

0.5

30,560

6.7

10.3

Voluntary automobile

209,397

43.8

0.1

189,279

41.5

(9.6)

CALI

57,424

12.0

(6.6)

54,420

11.9

(5.2)

Other

72,512

15.2

12.1

80,099

17.6

10.5

Total

477,776

100.0

0.4

456,151

100.0

(4.5)

(Note) The figures in the above tables include elimination of intersegment transactions.

19

  1. Investments in Securities

1. Trading securities

(Yen in millions)

March 31, 2020

June 30, 2020

Unrealized

Carrying amount

Unrealized

Carrying amount

gains/(losses)

gains/(losses)

included in income

included in income

Trading securities

2,949,868

(107,583)

2,912,086

73,599

(Note) "Trading securities" includes

certificates of deposits included in Cash, deposits and savings, and commercial papers included in

Monetary claims bought on the consolidated balance sheet.

2. Held-to-maturity securities

(Yen in millions)

March 31, 2020

June 30, 2020

Items

Carrying

Fair value

Difference

Carrying

Fair value

Difference

amount

amount

Domestic Bonds

1,095,428

1,311,673

216,244

1,096,101

1,296,039

199,938

Foreign Securities

4,003

4,066

62

3,392

3,274

(118)

Other Securities

13,108

13,108

-

12,525

12,525

-

Total

1,112,541

1,328,848

216,307

1,112,019

1,311,838

199,819

(Note) "Other Securities" includes

certificates of deposits included in Cash, deposits and

savings, and commercial papers included in

Monetary claims bought on the consolidated balance sheet.

3. Debt securities earmarked for underwriting reserves

(Yen in millions)

March 31, 2020

June 30, 2020

Items

Carrying

Fair value

Difference

Carrying

Fair value

Difference

amount

amount

Domestic Bonds

1,020,255

1,089,940

69,684

1,191,920

1,212,332

20,411

Foreign Securities

1,382,664

1,523,118

140,453

1,503,676

1,689,430

185,753

Total

2,402,920

2,613,059

210,138

2,695,597

2,901,762

206,165

4. Available-for-sale securities

(Yen in millions)

March 31, 2020

June 30, 2020

Items

Cost

Carrying

Difference

Cost

Carrying

Difference

amount

amount

Domestic Bonds

3,429,477

3,700,304

270,827

3,356,014

3,603,713

247,698

Domestic Stocks

1,018,732

2,065,614

1,046,882

1,014,452

2,246,195

1,231,742

Foreign Securities

2,578,973

2,651,182

72,209

2,579,074

2,716,371

137,297

Other Securities

274,406

269,561

(4,845)

315,506

319,270

3,764

Total

7,301,590

8,686,663

1,385,073

7,265,048

8,885,550

1,620,502

(Notes) 1. Available-for-sale securities without practically determinable fair value are not included in the above table.

  1. "Other Securities" includes certificates of deposits included in Cash, deposits and savings, and commercial papers and loan receivable trust beneficiary certificates included in Monetary claims bought on the consolidated balance sheet.
  2. The Company and its consolidated subsidiaries recognized impairment losses on Available-for-sale securities with practically determinable fair value as follows.
    For the year ended March 31, 2020: ¥36,009 million (comprised of ¥31,843 million on Domestic stocks and ¥4,165 million on Foreign securities)
    For the three months ended June 30, 2020: ¥4,646 million (comprised of ¥535 million on Domestic stocks and ¥4,111 million on Foreign securities)
    In principle, the Company and its domestic consolidated subsidiaries recognize impairment losses on securities with practically determinable fair value if the fair value declines by 30% or more from the cost.

20

(2) Summary of Business Results of Main Consolidated Subsidiaries

(a) Mitsui Sumitomo Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Balance Sheets

(Yen in millions)

Items

March 31, 2020

June 30, 2020

(Assets)

Cash, deposits and savings

489,791

442,660

Monetary claims bought

8,217

7,715

Money trusts

2,961

3,658

Investments in securities

4,925,543

4,998,449

Loans

400,609

414,150

Tangible fixed assets

209,951

208,011

Intangible fixed assets

98,478

98,558

Other assets

419,666

368,245

Deferred tax assets

111,516

78,692

Customers' liabilities under acceptances and guarantees

25,987

25,934

Bad debt reserve

(6,635)

(6,593)

Total assets

6,686,089

6,639,484

(Liabilities)

Policy liabilities:

3,715,273

3,679,911

Outstanding claims

629,241

606,976

Underwriting reserves

3,086,032

3,072,935

Bonds issued

587,093

587,093

Other liabilities:

566,927

555,093

Income taxes payable

3,744

17,817

Lease obligations

1,297

1,494

Asset retirement obligations

3,913

3,934

Other liabilities

557,973

531,847

Reserve for pension and retirement benefits

120,827

119,572

Reserve for retirement benefits for officers

316

280

Accrued bonuses for employees

10,633

152

Reserves under the special laws:

19,007

20,001

Reserve for price fluctuation

19,007

20,001

Acceptances and guarantees

25,987

25,934

Total liabilities

5,046,067

4,988,041

(Net assets)

Common stock

139,595

139,595

Capital surplus

93,107

93,107

Retained earnings

698,675

625,345

Total shareholders' equity

931,378

858,049

Net unrealized gains/(losses) on investments in securities

683,030

768,608

Net deferred gains/(losses) on hedges

25,613

24,785

Total valuation and translation adjustments

708,643

793,394

Total net assets

1,640,022

1,651,443

Total liabilities and net assets

6,686,089

6,639,484

21

Mitsui Sumitomo Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Statements of Income

(Yen in millions)

Items

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Ordinary income:

475,782

476,949

Underwriting income:

427,383

436,768

Net premiums written

378,726

375,464

Deposit premiums from policyholders

15,497

18,545

Investment income on deposit premiums from policyholders

7,798

7,327

Reversal of outstanding claims

14,853

22,265

Reversal of underwriting reserves

10,503

13,096

Investment income:

47,495

39,349

Interest and dividends income

40,698

36,508

Investment gains on money trusts

-

703

Gains on sales of securities

14,218

7,205

Transfer of investment income on deposit premiums from policyholders

(7,798)

(7,327)

Other ordinary income

903

831

Ordinary expenses:

389,437

393,462

Underwriting expenses:

328,845

332,291

Net claims paid

204,323

201,569

Loss adjustment expenses

21,678

22,778

Commissions and collection expenses

68,590

72,878

Maturity refunds to policyholders

33,288

34,967

Investment expenses:

3,769

1,414

Investment losses on money trusts

31

-

Losses on sales of securities

398

339

Impairment losses on securities

1,248

628

Operating expenses and general and administrative expenses

54,508

57,262

Other ordinary expenses:

2,314

2,494

Interest expense

2,288

2,469

Ordinary profit

86,344

83,486

Extraordinary income

78

37

Extraordinary losses

1,334

1,142

Income before income taxes

85,088

82,381

Income taxes

19,272

19,708

Net income

65,815

62,672

22

Mitsui Sumitomo Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Solvency Margin Ratio

Insurance companies running their business in Japan calculate the non-consolidated solvency margin ratio pursuant to the provisions of Articles 86 and 87 of the Insurance Business Act Enforcement Regulations and Public Notice No. 50 issued by the Ministry of Finance in 1996.

While insurance companies set aside reserves to provide for payments of insurance claims should an insured event occur, they are also required to maintain sufficient funds to pay out in an event outside the normal range of estimates such as a major catastrophe and a significant drop in the value of their assets.

The non-consolidated solvency margin ratio, or item (C) in each of the tables below, which is calculated in accordance with the Insurance Business Act, is the ratio of "solvency margin of insurance companies calculated based on their capital and other reserves", or (A) the total amount of solvency margin, to "risks exceeding the normal range of estimates", or (B) the total amount of risks.

The non-consolidated solvency margin ratio is one of the objective indicators used by the insurance regulatory authorities to supervise insurance companies. A non-consolidated solvency margin ratio of 200% or over indicates adequate ability to satisfy insurance claims and other payment requirements.

(Yen in millions)

March 31, 2020

June 30, 2020

(A) Total amount of solvency margin

3,076,392

3,154,327

Total net assets

879,578

858,049

Reserve for price fluctuation

19,007

20,001

Contingency reserve

-

-

Catastrophe reserve

550,227

550,203

General bad debt reserve

86

75

Net unrealized gains/(losses) on investments in securities and

852,586

959,375

net deferred gains/(losses) on hedges (prior to tax effect deductions)

Net unrealized gains/(losses) on land

54,618

54,591

Excess of policyholders' contract deposits (a)

-

-

Subordinated debts, etc. (b)

487,093

487,093

Amount excluded from the margin, out of (a) and (b)

-

-

Deductions

3,642

3,642

Others

236,835

228,578

(B) Total amount of risks

(R1 + R 2)2 + (R3 + R 4)2 + R5 + R6

877,260

901,772

General insurance risk (R1)

136,088

136,675

Insurance risk of third sector insurance contracts (R2)

-

-

Assumed interest rate risk (R3)

13,475

13,191

Asset management risk (R4)

700,269

722,350

Business administration risk (R5)

19,617

20,114

Catastrophe risk (R6)

131,040

133,525

(C) Solvency margin ratio

[(A) / {(B) x 1/2}] x 100701.3 %699.5 % (Note) The non-consolidated solvency margin ratio for June 30, 2020 is calculated by partially applying the simplified method

where components such as the catastrophe risk (R6) are calculated based on the data used for March 31, 2020.

23

(b) Aioi Nissay Dowa Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Balance Sheets

(Yen in millions)

Items

March 31, 2020

June 30, 2020

(Assets)

Cash, deposits and savings

174,108

166,662

Money trusts

2,441

2,419

Investments in securities

2,317,658

2,384,372

Loans

218,147

223,543

Tangible fixed assets

182,184

179,913

Intangible fixed assets

55,884

57,809

Other assets

381,021

343,835

Prepaid pension expenses

19,427

19,558

Deferred tax assets

63,162

36,226

Customers' liabilities under acceptances and guarantees

7,500

7,500

Bad debt reserve

(804)

(770)

Total assets

3,420,733

3,421,071

(Liabilities)

Policy liabilities:

2,366,879

2,356,139

Outstanding claims

564,436

551,336

Underwriting reserves

1,802,443

1,804,803

Bonds issued

72,000

72,000

Other liabilities:

265,188

199,492

Income taxes payable

10,090

10,350

Lease obligations

2

2

Asset retirement obligations

891

893

Other liabilities

254,203

188,246

Reserve for pension and retirement benefits

34,378

35,073

Accrued bonuses for employees

6,619

381

Reserves under the special laws:

30,088

30,522

Reserve for price fluctuation

30,088

30,522

Acceptances and guarantees

7,500

7,500

Total liabilities

2,782,654

2,701,109

(Net assets)

Common stock

100,005

100,005

Capital surplus

81,207

81,207

Retained earnings

185,491

197,768

Total shareholders' equity

366,703

378,981

Net unrealized gains/(losses) on investments in securities

271,374

340,980

Total valuation and translation adjustments

271,374

340,980

Total net assets

638,078

719,961

Total liabilities and net assets

3,420,733

3,421,071

24

Aioi Nissay Dowa Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Statements of Income

(Yen in millions)

Items

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Ordinary income:

366,083

354,522

Underwriting income:

341,835

335,174

Net premiums written

317,959

312,310

Deposit premiums from policyholders

6,683

6,008

Investment income on deposit premiums from policyholders

4,026

3,676

Reversal of outstanding claims

13,103

13,100

Investment income:

22,661

17,587

Interest and dividends income

20,380

17,681

Investment gains on money trusts

0

0

Gains on sales of securities

6,121

3,415

Transfer of investment income on deposit premiums from policyholders

(4,026)

(3,676)

Other ordinary income

1,586

1,761

Ordinary expenses:

332,673

310,382

Underwriting expenses:

280,507

260,746

Net claims paid

165,691

159,907

Loss adjustment expenses

16,787

17,714

Commissions and collection expenses

63,823

65,494

Maturity refunds to policyholders

15,059

14,740

Provision for underwriting reserves

15,096

2,360

Investment expenses:

4,160

2,076

Losses on sales of securities

70

76

Impairment losses on securities

3,044

766

Operating expenses and general and administrative expenses

47,429

47,038

Other ordinary expenses:

576

521

Interest expense

100

196

Ordinary profit

33,410

44,140

Extraordinary income

13

20

Extraordinary losses

853

3,524

Income before income taxes

32,569

40,636

Income taxes

8,629

9,657

Net income

23,940

30,978

25

Aioi Nissay Dowa Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Solvency Margin Ratio

(Yen in millions)

March 31, 2020

June 30, 2020

(A) Total amount of solvency margin

1,148,081

1,282,387

Total net assets

348,002

378,981

Reserve for price fluctuation

30,088

30,522

Contingency reserve

906

937

Catastrophe reserve

299,132

302,592

General bad debt reserve

123

119

Net unrealized gains/(losses) on investments in securities and

338,684

425,572

net deferred gains/(losses) on hedges (prior to tax effect deductions)

Net unrealized gains/(losses) on land

27,385

27,981

Excess of policyholders' contract deposits (a)

-

-

Subordinated debts, etc. (b)

58,800

58,800

Amount excluded from the margin, out of (a) and (b)

-

-

Deductions

4,269

4,269

Others

49,228

61,149

(B) Total amount of risks

(R1 + R 2)2 + ( R3 + R 4)2 + R5 + R 6

326,916

331,425

General insurance risk (R1)

114,413

114,904

Insurance risk of third sector insurance contracts (R2)

-

-

Assumed interest rate risk (R3)

6,634

6,472

Asset management risk (R4)

194,535

210,653

Business administration risk (R5)

8,060

8,192

Catastrophe risk (R6)

87,425

77,577

(C) Solvency margin ratio

[(A) / {(B) x 1/2}] x 100702.3 %773.8 % (Note) The non-consolidated solvency margin ratio for June 30, 2020 is calculated by partially applying the simplified method

where components such as the catastrophe risk (R6) are calculated based on the data used for March 31, 2020.

26

(c) Mitsui Direct General Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Balance Sheets

(Yen in millions)

Items

March 31, 2020

June 30, 2020

(Assets)

Cash, deposits and savings

12,133

10,661

Investments in securities

35,972

38,274

Tangible fixed assets

447

430

Intangible fixed assets

5,880

5,552

Other assets

5,339

5,507

Bad debt reserve

(4)

(4)

Total assets

59,768

60,421

(Liabilities)

Policy liabilities:

43,705

43,457

Outstanding claims

22,946

22,247

Underwriting reserves

20,759

21,210

Other liabilities:

1,405

1,212

Income taxes payable

95

52

Asset retirement obligations

18

18

Other liabilities

1,291

1,141

Reserve for pension and retirement benefits

219

234

Accrued bonuses for employees

288

-

Reserves under the special laws:

79

81

Reserve for price fluctuation

79

81

Deferred tax liabilities

50

50

Total liabilities

45,750

45,036

(Net assets)

Common stock

39,106

39,106

Capital surplus

9,006

9,006

Retained earnings

(34,083)

(32,705)

Total shareholders' equity

14,028

15,406

Net unrealized gains/(losses) on investments in securities

(10)

(22)

Total valuation and translation adjustments

(10)

(22)

Total net assets

14,017

15,384

Total liabilities and net assets

59,768

60,421

27

Mitsui Direct General Insurance Co., Ltd. (Non-Consolidated)

Non-Consolidated Statements of Income

(Yen in millions)

Items

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Ordinary income:

11,026

9,948

Underwriting income:

11,011

9,938

Net premiums written

9,076

9,233

Investment income on deposit premiums from policyholders

5

5

Reversal of outstanding claims

1,076

698

Reversal of underwriting reserves

852

-

Investment income:

8

4

Interest and dividends income

14

10

Transfer of investment income on deposit premiums from policyholders

(5)

(5)

Other ordinary income

6

5

Ordinary expenses:

9,097

8,565

Underwriting expenses:

6,824

5,735

Net claims paid

6,114

4,549

Loss adjustment expenses

627

650

Commissions and collection expenses

81

84

Provision for outstanding claims

-

450

Investment expenses

-

-

Operating expenses and general and administrative expenses

2,271

2,828

Other ordinary expenses

1

0

Ordinary profit

1,928

1,383

Extraordinary income

-

-

Extraordinary losses

1

1

Income before income taxes

1,926

1,381

Income taxes

1

3

Net income

1,924

1,378

28

Mitsui Direct General Insurance Co., Ltd. (Non-Consolidated)

Non-Consolidated Solvency Margin Ratio

(Yen in millions)

March 31, 2020

June 30, 2020

(A) Total amount of solvency margin

15,305

16,900

Total net assets

14,028

15,406

Reserve for price fluctuation

79

81

Contingency reserve

0

0

Catastrophe reserve

1,205

1,432

General bad debt reserve

2

2

Net unrealized gains/(losses) on investments in securities and

(10)

(22)

net deferred gains/(losses) on hedges (prior to tax effect deductions)

Net unrealized gains/(losses) on land

-

-

Excess of policyholders' contract deposits (a)

-

-

Subordinated debts, etc. (b)

-

-

Amount excluded from the margin, out of (a) and (b)

-

-

Deductions

-

-

Others

-

-

(B) Total amount of risks

(R1 + R 2)2 + ( R3 + R 4)2 + R5 + R 6

5,809

5,815

General insurance risk (R1)

5,227

5,227

Insurance risk of third sector insurance contracts (R2)

-

-

Assumed interest rate risk (R3)

0

0

Asset management risk (R4)

955

986

Business administration risk (R5)

194

195

Catastrophe risk (R6)

300

300

(C) Solvency margin ratio

[(A) / {(B) x 1/2}] x 100526.9 %581.1 % (Note) The non-consolidated solvency margin ratio for June 30, 2020 is calculated by partially applying the simplified method

to components such as the asset management risk (R4).

29

  1. Mitsui Sumitomo Aioi Life Insurance Co., Ltd. (Non-consolidated)Non-ConsolidatedBalance Sheets

(Yen in millions)

Items

March 31, 2020

June 30, 2020

(Assets)

Cash, deposits and savings

196,400

70,185

Receivables under resale agreements

407,722

351,582

Investments in securities

3,757,612

3,925,725

Loans

63,130

68,616

Tangible fixed assets

4,345

4,121

Intangible fixed assets

32,841

32,106

Due from agencies

1,996

1,621

Reinsurance accounts receivable

868

49

Other assets

45,651

41,145

Bad debt reserve

(97)

(89)

Total assets

4,510,472

4,495,064

(Liabilities)

Policy liabilities:

3,779,645

3,829,492

Outstanding claims

31,886

31,883

Underwriting reserves

3,737,682

3,787,628

Reserve for dividends to policyholders

10,077

9,979

Due to agencies

3,623

2,855

Reinsurance accounts payable

291

257

Other liabilities:

449,640

387,309

Payables under repurchase agreements

412,965

354,571

Payables under securities lending transactions

25,072

24,823

Income taxes payable

532

1,493

Lease obligations

1,296

1,082

Asset retirement obligations

437

430

Other liabilities

9,336

4,907

Reserve for pension and retirement benefits

3,856

4,000

Reserve for retirement benefits for officers

9

8

Reserves under the special laws:

8,725

8,965

Reserve for price fluctuation

8,725

8,965

Deferred tax liabilities

3,891

3,191

Total liabilities

4,249,683

4,236,080

(Net assets)

Common stock

85,500

85,500

Capital surplus

93,688

93,688

Retained earnings

19,000

18,996

Total shareholders' equity

198,188

198,184

Net unrealized gains/(losses) on investments in securities

62,599

60,799

Total valuation and translation adjustments

62,599

60,799

Total net assets

260,788

258,983

Total liabilities and net assets

4,510,472

4,495,064

30

Mitsui Sumitomo Aioi Life Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Statements of Income

(Yen in millions)

Items

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Ordinary income:

137,807

135,418

Insurance premiums and others:

123,422

120,514

Insurance premiums

122,511

120,455

Investment income:

13,259

14,196

Interest and dividends income

11,473

12,569

Gains on sales of securities

1,779

1,351

Gains on derivative transactions

-

238

Other ordinary income:

1,125

708

Reversal of outstanding claims

546

2

Ordinary expenses:

133,181

127,597

Insurance claims and others:

54,447

53,733

Insurance claims

10,546

10,352

Annuity payments

4,427

4,711

Benefits

6,975

7,896

Surrender benefits

29,945

29,299

Other refunds

1,077

1,041

Provision for underwriting reserves and others:

53,885

49,946

Provision for underwriting reserves

53,885

49,946

Provision for interest portion of reserve for dividends to policyholders

0

0

Investment expenses:

310

21

Losses on sales of securities

280

15

Losses on derivative transactions

20

-

Operating expenses

20,265

19,337

Other ordinary expenses

4,271

4,559

Ordinary profit

4,626

7,821

Extraordinary income

0

0

Extraordinary losses

251

253

Provision for reserve for dividends to policyholders

1,672

937

Income before income taxes

2,701

6,630

Income taxes

686

1,770

Net income

2,014

4,860

31

Mitsui Sumitomo Aioi Life Insurance Co., Ltd. (Non-consolidated)

Business Results

Amount of Policies in Force and New Policies

(1) Policies in force

(Yen in 100 millions)

March 31, 2020

June 30, 2020

Number of policies

Amount

Number of policies

Amount

(in thousands)

(in thousands)

Individual insurance

3,726

237,974

3,740

236,791

Individual annuities

171

6,605

169

6,558

Group insurance

-

88,884

-

89,725

Group annuities

-

2

-

3

(Notes) 1. The amounts

of individual annuities represent the total sum of (a)

the funds to be held at the time annuity payments are

to commence for the policies for which annuity payments have not yet commenced and (b) the underwriting reserves

for the policies for which annuity payments have commenced.

2. The amounts of group annuities represent the underwriting reserves.

(2) New policies

(Yen in 100 millions)

Three months ended June 30, 2019

Three months ended June 30, 2020

Number of

Amount

Number of

Amount

policies

New policies

Net increase

policies

New policies

Net increase

(in thousands)

by conversion

(in thousands)

by conversion

Individual insurance

78

5,008

5,008

-

50

3,325

3,325

-

Individual annuities

0

13

13

-

0

10

10

-

Group insurance

-

249

249

-

-

213

213

-

Group annuities

-

-

-

-

-

-

-

-

(Note) The amounts of

individual annuities represent the funds to be held at the time annuity payments are to commence.

Annualized Premiums

(1) Policies in force

(Yen in 100 millions)

March 31, 2020

June 30, 2020

Individual insurance

4,075

4,055

Individual annuities

406

403

Total:

4,481

4,459

Medical coverage,

1,381

1,393

living benefits, etc.

(2) New policies

(Yen in 100 millions)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Individual insurance

66

46

Individual annuities

0

0

Total:

66

47

Medical coverage,

48

28

living benefits, etc.

(Notes) 1. An annualized

premium is the annual total of premiums that is obtained by multiplying the amount of a single payment

with the number of payments per year in accordance with the premium payment method. An annualized premium for a

lump-sum payment policy is the premium divided by the number of years of coverage.

2. "Medical coverage, living benefits, etc." represents the portion of annualized premiums that corresponds to medical coverage benefits (for hospitalization, surgeries, etc.), living benefits (for specified diseases, nursing care, etc.) and premium waiver benefits (excluding those for disability, but including those for specified diseases, nursing care, etc.).

32

Mitsui Sumitomo Aioi Life Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Business Performance

(Yen in millions)

Three months ended

Three months ended

Change

June 30, 2019

June 30, 2020

Fundamental revenues:

136,030

133,823

(2,207)

Insurance premiums and others

123,422

120,514

(2,908)

Fundamental expenses

132,420

127,480

(4,939)

Fundamental profit

3,610

6,342

2,732

Capital gains/(losses)

1,483

1,571

88

Non-recurring gains/(losses)

(467)

(91)

375

Ordinary profit

4,626

7,821

3,195

Extraordinary income

0

0

(0)

Extraordinary losses

251

253

1

Provision for reserve for dividends to policyholders

1,672

937

(735)

Income taxes

686

1,770

1,083

Net income

2,014

4,860

2,845

Non-Consolidated Solvency Margin Ratio

(Yen in millions)

March 31, 2020

June 30, 2020

(A) Total amount of solvency margin

492,307

496,017

Total capital

193,323

196,962

Reserve for price fluctuation

8,725

8,965

Contingency reserve

38,888

38,987

General bad debt reserve

3

3

Net unrealized gains/(losses) on investments in securities and

78,249

75,999

net deferred gains/(losses) on hedges (prior to tax effect deductions) x 90%

Net unrealized gains/(losses) on land x 85%

-

-

Excess of continued Zillmerized reserve (a)

168,067

168,288

Subordinated debts, etc. (b)

-

-

Amount excluded from the margin, out of (a) and (b)

-

-

Brought in capital

-

-

Deductions

-

-

Others

5,048

6,811

(B) Total amount of risks

(R1 + R8) 2 + (R2 + R3 + R7) 2 + R4

63,551

63,769

Insurance risk (R1)

18,352

18,312

Insurance risk of third sector insurance contracts (R8)

16,532

16,652

Assumed interest rate risk (R2)

3,210

3,218

Minimum guarantee risk (R7)

-

-

Asset management risk (R3)

47,841

48,036

Business administration risk (R4)

1,718

1,724

(C) Solvency margin ratio

1,549.3 %

1,555.6 %

[(A) / {(B) x 1/2}] x 100

33

  1. Mitsui Sumitomo Primary Life Insurance Co., Ltd. (Non-consolidated)Non-ConsolidatedBalance Sheets

(Yen in millions)

Items

March 31, 2020

June 30, 2020

(Assets)

Cash, deposits and savings

399,783

284,073

Monetary claims bought

100,995

150,966

Money trusts

1,660,997

1,863,644

Investments in securities

4,342,621

4,548,923

Loans

215,294

235,058

Tangible fixed assets

1,046

993

Intangible fixed assets

12,565

12,535

Reinsurance accounts receivable

8,971

9,524

Other assets

29,497

32,738

Deferred tax assets

43,132

25,886

Total assets

6,814,907

7,164,345

(Liabilities)

Policy liabilities:

6,463,416

6,771,462

Outstanding claims

19,394

17,644

Underwriting reserves

6,444,021

6,753,818

Due to agencies

3,581

1,904

Reinsurance accounts payable

4,997

3,893

Other liabilities:

68,587

66,082

Income taxes payable

1,396

-

Lease obligations

881

695

Asset retirement obligations

177

177

Other liabilities

66,132

65,208

Reserves under the special laws:

79,500

80,455

Reserve for price fluctuation

79,500

80,455

Total liabilities

6,620,083

6,923,799

(Net assets)

Common stock

41,060

41,060

Capital surplus

24,735

24,735

Retained earnings

117,883

119,258

Total shareholders' equity

183,678

185,053

Net unrealized gains/(losses) on investments in securities

(5,340)

40,159

Net deferred gains/(losses) on hedges

16,486

15,333

Total valuation and translation adjustments

11,145

55,493

Total net assets

194,823

240,546

Total liabilities and net assets

6,814,907

7,164,345

34

Mitsui Sumitomo Primary Life Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Statements of Income

(Yen in millions)

Items

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Ordinary income:

295,792

527,389

Insurance premiums and others:

262,275

108,955

Insurance premiums

253,401

78,569

Investment income:

30,548

415,715

Interest and dividends income

22,591

22,636

Investment gains on money trusts

-

94,009

Gains on sales of securities

1,028

12,951

Investment gains on separate accounts

6,929

102,703

Other ordinary income:

2,968

2,718

Reversal of outstanding claims

1,914

1,750

Ordinary expenses:

299,442

518,732

Insurance claims and others:

128,065

199,136

Insurance claims

23,701

23,889

Annuity payments

19,822

18,839

Benefits

35,675

34,714

Surrender benefits

30,911

82,898

Other refunds

1,210

653

Provision for underwriting reserves and others:

59,079

309,796

Provision for underwriting reserves

59,079

309,796

Investment expenses:

94,929

293

Interest expense

14

10

Investment losses on money trusts

4,085

-

Losses on sales of securities

178

281

Operating expenses

14,550

7,631

Other ordinary expenses

2,816

1,874

Ordinary profit/(loss)

(3,649)

8,657

Extraordinary income

10,800

-

Extraordinary losses

-

955

Income before income taxes

7,151

7,701

Income taxes

1,930

2,129

Net income

5,220

5,572

35

Mitsui Sumitomo Primary Life Insurance Co., Ltd. (Non-consolidated)

Business Results

Amount of Policies in Force and New Policies

(1) Policies in force

(Yen in 100 millions)

March 31, 2020

June 30, 2020

Number of policies

Amount

Number of policies

Amount

(in thousands)

(in thousands)

Individual insurance

825

42,587

815

44,675

Individual annuities

386

22,553

384

23,126

Group insurance

-

-

-

-

Group annuities

-

-

-

-

(Note) The amounts of individual annuities represent the total sum of (a) the funds to be held at the time annuity payments are to commence (the premium reserves in the case of individual variable annuities) for the policies for which annuity payments have not yet commenced and (b) the underwriting reserves for the policies for which annuity payments have commenced.

(2) New policies

(Yen in 100 millions)

Three months ended June 30, 2019

Three months ended June 30, 2020

Number of

Amount

Number of

Amount

policies

New policies

Net increase

policies

New policies

Net increase

(in thousands)

by conversion

(in thousands)

by conversion

Individual insurance

29

1,930

1,930

-

7

632

632

-

Individual annuities

10

625

625

-

2

159

159

-

Group insurance

-

-

-

-

-

-

-

-

Group annuities

-

-

-

-

-

-

-

-

(Note) The amounts of

individual annuities represent the funds to be held at the time annuity payments are to commence (the

premium reserves at the time of enrollment in the case of individual variable annuities).

Annualized Premiums

(1) Policies in force

(Yen in 100 millions)

March 31, 2020

June 30, 2020

Individual insurance

3,318

3,478

Individual annuities

2,660

2,667

Total:

5,979

6,146

Medical coverage,

0

0

living benefits, etc.

(2) New policies

(Yen in 100 millions)

Three months ended

Three months ended

June 30, 2019

June 30, 2020

Individual insurance

156

66

Individual annuities

106

33

Total:

262

99

Medical coverage,

-

-

living benefits, etc.

(Notes) 1. An annualized

premium is the annual total of premiums that is obtained by multiplying the amount of a single payment

with the number of payments per year in accordance with the premium payment method. An annualized premium for a

lump-sum payment policy is the premium divided by the number of years of coverage.

2. "Medical coverage, living benefits, etc." represents the portion of annualized premiums that corresponds to medical coverage benefits (for hospitalization, surgeries, etc.), living benefits (for specified diseases, nursing care, etc.) and premium waiver benefits (excluding those for disability, but including those for specified diseases, nursing care, etc.).

36

Mitsui Sumitomo Primary Life Insurance Co., Ltd. (Non-consolidated)

Non-Consolidated Business Performance

(Yen in millions)

Three months ended

Three months ended

Change

June 30, 2019

June 30, 2020

Fundamental revenues:

326,764

520,557

193,792

Insurance premiums and others

262,275

108,955

(153,319)

Fundamental expenses

343,710

514,995

171,284

Fundamental profit/(loss)

(16,945)

5,562

22,508

Capital gains/(losses)

13,855

6,550

(7,304)

Non-recurring gains/(losses)

(559)

(3,455)

(2,896)

Ordinary profit/(loss)

(3,649)

8,657

12,306

Extraordinary income

10,800

-

(10,800)

Extraordinary losses

-

955

955

Provision for reserve for dividends to policyholders

-

-

-

Income taxes

1,930

2,129

199

Net income

5,220

5,572

351

Non-Consolidated Solvency Margin Ratio

(Yen in millions)

March 31, 2020

June 30, 2020

(A) Total amount of solvency margin

546,005

595,945

Total capital

179,481

185,053

Reserve for price fluctuation

79,500

80,455

Contingency reserve

80,497

83,953

General bad debt reserve

-

-

Net unrealized gains/(losses) on investments in securities and

net deferred gains/(losses) on hedges (prior to tax effect deductions) x 90%

(7,417)

50,764

(100% in case of negative value)

Net unrealized gains/(losses) on land x 85%

-

-

Excess of continued Zillmerized reserve (a)

172,286

151,894

Subordinated debts, etc. (b)

-

-

Amount excluded from the margin, out of (a) and (b)

-

-

Brought in capital

-

-

Deductions

-

-

Others

41,657

43,824

(B) Total amount of risks

(R1 + R8) 2 + (R2 + R3 + R7) 2 + R4

146,376

159,676

Insurance risk (R1)

996

1,009

Insurance risk of third sector insurance contracts (R8)

2

2

Assumed interest rate risk (R2)

53,345

56,225

Minimum guarantee risk (R7)

1,656

1,687

Asset management risk (R3)

88,480

98,609

Business administration risk (R4)

2,889

3,150

(C) Solvency margin ratio

746.0 %

746.4 %

[(A) / {(B) x 1/2}] x 100

37

Attachments

  • Original document
  • Permalink

Disclaimer

MS&AD Insurance Group Holdings Inc. published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 04:03:07 UTC